Connect with us

World News

Devolut leverages e-commerce growth in Latin America to develop reverse logistics tool on August 28, 2023 at 12:01 pm

Published

on

With the explosion of e-commerce during the global pandemic, companies not only had to adopt Amazon-like shipping skills, but also how to coordinate and manage returns.

In Latin America, the reverse logistics process “is a mess,” according to Agustin Shutte, founder and CEO of Devolut, which provides an end-to-end returns solution for e-commerce sellers.

“It’s dominated by traditional carriers who are not reliable, are super expensive and take forever to take the product back to the merchant,” Shutte told TechCrunch. “This leads to refunds taking 40 to 50 days. Developing a network of return points, like Happy Returns did in the U.S., is something completely unique that no one is doing.”

He started the Mexico-based company earlier this year with Emiliano Monge. This is their second startup together, having previously founded another logistics startup where they saw firsthand how inefficient the return process was.

Advertisement

Devolut is still very much in its early stages, having launched just three months ago. However, the company is already working with 20 B2B clients across three countries.

Taking a nod from Happy Returns, Devolut enables sellers a returns option that doesn’t require boxes or labels through a network of what will be “city points,” where those who want to return merchandise can go, for example, a pharmacy or convenience store.

Advertisement

Along with that is software that fully automates the process and technology that assesses item conditions upon receipt. Buyers get a QR code that will be scanned by the clerk at the city point who then puts the item in a plastic bag, scans a preprinted return label and puts the item inside reusable bins, Shutte explained. In most cases, Devolut will be able to provide instant refunds and save merchants up to 50% in returns management costs.

Devolut’s returns dashboard. Image Credits: Devolut

While it is focused on returns, the company is also using AI to promote exchanges instead of refunds so that merchants can retain more revenue, Shutte said. Devolut plans to make money from a monthly software charge for the merchant, a per return charge for managing the process and charging a percentage for any upsells or cross selling.

Advertisement

One of the unique things is that Devolut essentially has government backing for its developing a returns ecosystem. Shutte said some countries, including Mexico, Brazil, Argentina and Colombia, have recently passed laws forcing merchants to take returns from online purchases.

“More importantly than that, is that Amazon and MercadoLibre are setting a new bar in terms of post-purchase experience,” he added. “Just like same- or next-day delivery changed the game in LatAm, now they expect the same experience from every direct-to-consumer brand. Whether the merchants like it or not, returns in LatAm are increasing, and clients are demanding a much better experience. Maybe even more relevant is the fact that it’s been widely proven that a good return experience generates up to 30% in revenues, so the ROI on a solution like ours is 50x to 60x.”

There are some other startups working on this reverse logistics problem, for example, Rever, Loop Returns, ReturnLogic, Seel and Sendcloud. However, Shutte said Devolut’s closest competitor is Reversso, a Chilean company providing each customer a custom portal to manage returns. The main differentiator, according to Shutte, being that Reversso is focused on software rather than an end-to-end solution, while Devolut will have that network of return points.

Today, the company announced that it raised $600,000 in pre-seed funding. Investors in the round include Seedstars International Ventures, FJ Labs, Far Out Ventures, Pareto 20 and Forum Ventures.

Advertisement

Devolut intends to further develop its AI-powered returns and exchange algorithms that generate product recommendations and instant returns, eventually for refunds via its own digital wallet. It is also testing its tool with Sally Beauty’s 240 stores in Mexico.

“Latin America is a region where commerce is growing the most, so we see our solution coming as the next wave: first it was digital payments, second, same-day delivery and now the third wave is post-purchase,” Shutte said. “We see how big the market could become. In the U.S., people buy around 50 to 60 purchases per year, however, in LatAm it is two per year. That could grow 7x compared to today, so that is an enabler to grow.”

Deep tech in Latin America and the Caribbean is set to skyrocket

Advertisement

​ Devolut enables merchants a returns option that doesn’t require boxes or labels. It also provides a network of “city points” where consumers can go to return merchandise. 

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

US May Completely Cut Income Tax Due to Tariff Revenue

Published

on

President Donald Trump says the United States might one day get rid of federal income tax because of money the government collects from tariffs on imported goods. Tariffs are extra taxes the U.S. puts on products that come from other countries.

What Trump Is Saying

Trump has said that tariff money could become so large that it might allow the government to cut income taxes “almost completely.” He has also talked about possibly phasing out income tax over the next few years if tariff money keeps going up.

How Taxes Work Now

Right now, the federal government gets much more money from income taxes than from tariffs. Income taxes bring in trillions of dollars each year, while tariffs bring in only a small part of that total. Because of this gap, experts say tariffs would need to grow by many times to replace income tax money.

Questions From Experts

Many economists and tax experts doubt that tariffs alone could pay for the whole federal budget. They warn that very high tariffs could make many imported goods more expensive for shoppers in the United States. This could hit lower- and middle‑income families hardest, because they spend a big share of their money on everyday items.

What Congress Must Do

The president can change some tariffs, but only Congress can change or end the federal income tax. That means any real plan to remove income tax would need new laws passed by both the House of Representatives and the Senate. So far, there is no detailed law or full budget plan on this idea.

What It Means Right Now

For now, Trump’s comments are a proposal, not a change in the law. People and businesses still have to pay federal income tax under the current rules. The debate over using tariffs instead of income taxes is likely to continue among lawmakers, experts, and voters.

Advertisement
Continue Reading

News

Epstein Files to Be Declassified After Trump Order

Published

on


Former President Donald Trump has signed an executive order directing federal agencies to declassify all government files related to Jeffrey Epstein, the disgraced financier whose death in 2019 continues to fuel controversy and speculation.

The order, signed Wednesday at Trump’s Mar-a-Lago estate, instructs the FBI, Department of Justice, and intelligence agencies to release documents detailing Epstein’s network, finances, and alleged connections to high-profile figures. Trump described the move as “a step toward transparency and public trust,” promising that no names would be shielded from scrutiny.

“This information belongs to the American people,” Trump said in a televised statement. “For too long, powerful interests have tried to bury the truth. That ends now.”

U.S. intelligence officials confirmed that preparations for the release are already underway. According to sources familiar with the process, the first batch of documents is expected to be made public within the next 30 days, with additional releases scheduled over several months.

Reactions poured in across the political spectrum. Supporters praised the decision as a bold act of accountability, while critics alleged it was politically motivated, timed to draw attention during a volatile election season. Civil rights advocates, meanwhile, emphasized caution, warning that some records could expose private victims or ongoing legal matters.

The Epstein case, which implicated figures in politics, business, and entertainment, remains one of the most talked-about scandals of the past decade. Epstein’s connections to influential individuals—including politicians, royals, and executives—have long sparked speculation about the extent of his operations and who may have been involved.

Advertisement

Former federal prosecutor Lauren Fields said the release could mark a turning point in public discourse surrounding government transparency. “Regardless of political stance, this declassification has the potential to reshape how Americans view power and accountability,” Fields noted.

Officials say redactions may still occur to protect sensitive intelligence or personal information, but the intent is a near-complete disclosure. For years, critics of the government’s handling of Epstein’s case have accused agencies of concealing evidence or shielding elites from exposure. Trump’s order promises to change that narrative.

As anticipation builds, journalists, legal analysts, and online commentators are preparing for what could be one of the most consequential information releases in recent history.

Continue Reading

Politics

Netanyahu’s UN Speech Triggers Diplomatic Walkouts and Mass Protests

Published

on

What Happened at the United Nations

On Friday, Israeli Prime Minister Benjamin Netanyahu addressed the United Nations General Assembly in New York City, defending Israel’s ongoing military operations in Gaza. As he spoke, more than 100 delegates from over 50 countries stood up and left the chamber—a rare and significant diplomatic walkout. Outside the UN, thousands of protesters gathered to voice opposition to Netanyahu’s policies and call for accountability, including some who labeled him a war criminal. The protest included activists from Palestinian and Jewish groups, along with international allies.

Why Did Delegates and Protesters Walk Out?

The walkouts and protests were a response to Israel’s continued offensive in Gaza, which has resulted in widespread destruction and a significant humanitarian crisis. Many countries and individuals have accused Israel of excessive use of force, and some international prosecutors have suggested Netanyahu should face investigation by the International Criminal Court for war crimes, including claims that starvation was used as a weapon against civilians. At the same time, a record number of nations—over 150—recently recognized the State of Palestine, leaving the United States as the only permanent UN Security Council member not to join them.

International Reaction and Significance

The diplomatic walkouts and street protests demonstrate increasing global concern over the situation in Gaza and growing support for Palestinian statehood. Several world leaders, including Colombia’s President Gustavo Petro, showed visible solidarity with protesters. Petro called for international intervention and, controversially, for US troops not to follow orders he viewed as supporting ongoing conflict. The US later revoked Petro’s visa over his role in the protests, which he argued was evidence of a declining respect for international law.

BILATERAL MEETING WITH THE PRIME MINISTER OF ISRAEL Photo credit: Matty STERN/U.S. Embassy Jerusalem

Why Is This News Important?

The Gaza conflict is one of the world’s most contentious and closely-watched issues. It has drawn strong feelings and differing opinions from governments, activists, and ordinary people worldwide. The United Nations, as an international organization focused on peace and human rights, is a key arena for these debates. The events surrounding Netanyahu’s speech show that many nations and voices are urging new action—from recognition of Palestinian rights to calls for sanctions against Israel—while discussion and disagreement over the best path forward continue.

This episode at the UN highlights how international diplomacy, public protests, and official policy are all intersecting in real time as the search for solutions to the Israeli-Palestinian conflict remains urgent and unresolved.

Continue Reading

Trending